Yes, there are legal considerations when transitioning to a global Employer of Record after closing an entity. You must ensure compliance with local labor laws, tax regulations, and contractual obligations in the country where employees will be engaged.
This includes properly terminating employees from the closed entity, settling any outstanding liabilities, and ensuring that contracts with the EOR align with local employment laws. Additionally, intellectual property, data privacy, and permanent establishment risks should be assessed to avoid unintended legal or tax consequences.
When switching to Playroll, we work with you to ensure continuous compliance when transitioning employees to the EOR model, and prioritize the secure transfer of sensitive company data. Unlike many competitors, we have in-house legal experts to make sure the transition happens smoothly and safeguard your business from risks.